Sign up
Log in
BUZZ-Street View: Simon Property Group likely to face headwinds from higher interest expense
Share
Listen to the news
BUZZ-Street View: Simon Property Group likely to face headwinds from higher interest expense

** Simon Property Group SPG.N topped market expectations for fourth-quarter funds from operations (FFO) on Monday, as the commercial real estate investment trust (REIT) benefited from strong leasing demand at its malls and shopping centers

** The median PT of 18 brokerages covering the stock is $144


CONSERVATIVE FORECAST

** Piper Sandler ("overweight," PT: $172) says co has $1.5 bln in free cash flow to reinvest after dividends which is matched by few other REIT peers, leading to a ~2% growth in funds from operations (FFO) growth yearly

** Wth minimal headwinds, co should continue to earn higher profits- Piper

** Jefferies ("hold," PT: $135) says weaker than expected forecast could create pressure

** Evercore ISI ("in line," PT: $142) says some of the headwinds driving slower growth is higher interest expense from upcoming debt refinancing and some development slowdown -term

** Adds, co forecasts "conservatively" for 2024

** J.P.Morgan ("") that further monetization of co's Other Platform Investments(OPI) in the quarter was a "positive" as it introduces more stability into SPG's earnings and also gives it capital to reinvest in core real-estate




(Reporting by Priyadarshini Basu in Bengaluru)

((priyadarshini.basu@thomsonreuters.com))

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.
What's Trending
No content on the Webull website shall be considered a recommendation or solicitation for the purchase or sale of securities, options or other investment products. All information and data on the website is for reference only and no historical data shall be considered as the basis for judging future trends.